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2018 (10) TMI 1087 - ITAT DELHIReopening of assessment - non recording of reasons properly - addition u/s 68 - reopening beyond four years from the end of relevant assessment year - Held that:- In the instant case there are no enquiries which have been confronted to the assessee despite specific request and as such, there is no material which could enable the learned Assessing Officer to form an opinion that income of assessee has escaped assessment so as to allege that share capital represented accommodation entries. Infact in the case of Pratibha Finvest (P) Ltd. v. ITO [2012 (12) TMI 575 - DELHI HIGH COURT] assessee has not even requested for reasons recorded during the course of assessment proceedings; and therefore, the facts of the case of assessee are totally distinguishable. Lastly, so far as the judgment in the case of Raymond Woolen Mills Ltd. vs. ITO [1997 (12) TMI 12 - SUPREME COURT] held that correctness of material is not a thing which can be considered at the stage of assumption of jurisdiction under section 147 of the Act. There is no dispute to the aforesaid proposition and however on the facts of the case, there is no tangible material and therefore, action u/s. 148 of the Act is invalid. Thus the notice issued u/s 148 of the Act was held invalid and therefore, I confirm the action of the Ld. CIT(A) in treating the assessment order passed u/s. 147 r.w.s. 143(3) of the Act as ab-initio-void and reject the ground raised by the revenue. Even on merits, it is noted that the issue is squarely covered by order of the Tribunal in the case of ACIT vs. M/s. Kapis Impex Pvt. Ltd. [2018 (3) TMI 1607 - ITAT DELHI] - no enquiries whatsoever have been made by the Assessing Officer by deputing Inspector or directing the assessee to produce shareholders. All what has happened is that summons under section 133(6) of the Act which was complied with by one shareholder and in the other case summon stood served. The conclusion of the learned CIT(A) to delete the addition by holding that once shareholders do exist, have their own independent identity, source of income, maintain books of accounts, carry on their business and earn income from investments not only in assessee but also shares of other companies, then the inevitable conclusion is that they are not paper companies is upheld and the addition in dispute is deleted. - Decided in favour of assessee
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